Chinese hedge funds enter second generation with greater flexibility
Thu Jul 19, 2012
Despite a difficult year, hedge fund managers in China are heartened by the ongoing renminbi liberalisation and new measures to lower the barrier to entry
Chinese hedge funds have come a long way from their early days.
Managers are now more diverse, follow a greater variety of
strategies, and are more likely to hedge. Moreover, China's
gradual liberalisation of the renminbi promises to open up
opportunities for Chinese hedge funds, managers and investors
Though Chinese hedge fund managers still mainly follow an
equities long/short strategy, not all funds are long-biased
now-adays. The first generation of Chinese hedge fund managers
typically came from a unit trust or mutual fund background. But
starting from around 2008, managers were more likely to have
spent time at a hedge fund before starting their own business.
"The second generation is more flexible and adaptable to market
opportunities," says Julius Wang, head of Samena Asia
"Many of the start-ups who launched last year are actually
running market-neutral exposures, both as a function...
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